Rich Karlgaard was speaking in South Bend, Indiana last week, where he listed what he calls “attributes of winning companies.” Along with having a clear-cut purpose and mastery of the supply chain, Kalgaard says it’s essential for winning companies to be good at focusing on the demands of aging baby boomers. The South Bend Tribune covered his speech:
Karlgaard estimates 70 million of the 77 million baby boomers in the U.S. will find that they have underfunded their retirement. To live on $80,000 a year, a person will have to have $2 million in retirement account, he said. That’s because a safe annual rate of return on a 401(k) these days is 4 percent, he said. Karlgaard believes baby boomers “will pull the real estate card and move from expensive communities to cheaper communities,” maybe even dorm-like structures to relive their youth and have fun.
“Dorm-like structures” to relive our youth and have fun??? In the words of tennis boomer John McEnroe, “you cannot be serious!” I have no idea where Karlgaard went to college, but when I think of dorm life, I remember the mildew smell of community bathrooms, the late night sound of freshmen puking in the halls, and the sight of dingy little rooms painted in institutional green, gray or beige.
I don’t know about you, but I will either beef up my retirement funds, learn to live on less than 80k a year or keep working till I die, but I will not – repeat not – go back to living in a dorm!